Klarna Group (KLAR) investor relations material

Key milestones and business model evolution

• Reached 1 million merchants and 118 million consumers, with $128 billion in transaction volume in the last year.

• Focused on being spend-centric, offering payment products for every vertical and channel, not just Buy Now, Pay Later.

• Achieved high population penetration: 80% in Sweden, 30%+ in Germany, 20%+ in the UK, and 10% in the US.

• Expanded through partnerships with major PSPs like Stripe, Worldpay, JPMorgan, Nexi, and Adyen, targeting $9 trillion in spending opportunity.

• Merchant network growth accelerated by Stripe partnership, adding 285,000 merchants in 2025, up 42% year-over-year.

Product and market strategy

• Diversified product suite includes cards, Fair Financing, Apple Pay, Google Pay, and Klarna Balance.

• Card product saw 209% GMV growth in Q4, with 4.2 million active users and 25% of US card purchases now offline.

• Membership program with four tiers has 3.5 million members, supporting higher engagement and ARPU.

• Average revenue per user for the 2022 cohort grew from $12 to $52, with first-year ARPU rising from $12 to $21.

• Product expansion and vertical ubiquity drive increased user adoption and engagement.

Financial guidance and performance

• 2026 guidance targets over $27 billion in volume, up from $20 billion in 2025.

• Transaction margin dollars expected to grow 30% year-over-year, with a long-term target of 50% transaction margin as a percentage of revenue.

• Adjusted operating expenses down 8% since 2022, while revenues increased 104%.

• Operating leverage improvement of 500 basis points expected by 2026.

• No direct exposure to the Middle East; consumer credit quality remains healthy with short average loan duration and robust underwriting.